Los Angeles — The University of California, Los Angeles (UCLA) has acquired One Westside and Westside Two, located two miles from its Westwood campus in Los Angeles. A joint venture between Hudson Pacific Properties (NYSE: HPP) and Macerich (NYSE: MAC) sold the assets for $700 million.
The 700,000-square-foot property — located at 10800, 10830 and 10850 W. Pico Blvd.— was formerly occupied by Westside Pavilion mall, a city landmark that served as the backdrop for a number of movies and television shows since its opening in 1985.
Hudson Pacific and Macerich began redevelopment efforts at the property in March 2018, converting the mall into a Class A office campus. Google inked a lease in January 2019 to occupy the entire campus under a 14-year term, which was to commence upon completion of the project in 2022. Details of the termination of Google’s lease at the property were not disclosed.
The university plans to convert the property into UCLA Research Park, which will house the California Institute for Immunology and Immunotherapy at UCLA and the UCLA Center for Quantum Science and Engineering. The acquisition was made possible by a $500 million investment from the state of California, $200 million of which was already allocated.
The property’s research labs and offices will be utilized by both disciplines, with the Immunology Institute studying new tools, treatments and vaccines for cancer; autoimmune and immune deficiency disorders; infectious diseases; allergies; heart conditions; solid organ transplantation; and other major health-related issues.
The university’s Center for Quantum Science — which was founded in 2018 and has received funding from Boeing and the National Science Foundation — will continue to conduct its research in the emerging field, with the aim of dramatically increasing information processing power by harnessing the behavior of subatomic particles.
UCLA also plans to convert the property’s 12-screen movie theater into lecture halls or performance spaces, allowing the university to offer programming across its arts, humanities, sciences and social sciences programs. A timeline for any redevelopment efforts and occupation of the research park was not announced.
The university is one of the most applied-to universities in the U.S., according to its website, and boasts an enrollment of 47,518 students, including 32,121 undergraduates and 15,397 graduate students, medical and dentistry interns and residents.
Headquartered in Los Angeles, Hudson Pacific Properties is a real estate investment trust that focuses on acquiring, transforming and developing sustainable office and studio space. The company’s stock price closed at $9.19 per share on Wednesday, Jan. 3, down from $25.80 one year ago.
Santa Monica-based Macerich is an owner, operator and developer of retail real estate. The company’s portfolio is concentrated in California; the Pacific Northwest; Phoenix and Scottsdale, Arizona; and metropolitan areas spanning from New York City to Washington, D.C. The company’s stock price closed at $14.89 per share on Wednesday, Jan. 3, up from $10.52 one year ago.